Eni SpA said Wednesday it had signed an agreement to buy two million metric tons per annum (MMtpa) of liquefied natural gas (LNG) for 20 years from Venture Global Inc.’s under-construction CP2 LNG in Cameron Parish, Louisiana.
The Italian state-backed energy major expects deliveries, from phase 1 of the project, to begin by 2030. CP2 LNG is expected to start up 2027.
“The agreement is Eni’s first long-term LNG supply from the United States and represents a significant milestone in Eni’s strategy to expand and diversify its global LNG footprint, enhancing portfolio flexibility. Part of these volumes will contribute to the diversification of Europe’s gas supplies”, Eni said in a statement online.
“Venture Global’s proven success in project delivery will support Eni’s ambitions to grow its LNG portfolio to approximately 20 MTPA [million metric tons per annum] of contracted volumes by 2030, and to expand its trading business while meeting the evolving needs of customers across key markets worldwide”.
Arlington, Virginia-based Venture Global has already been supplying Italy with LNG through its Calcasieu Pass and Plaquemines LNG facilities, according to the company.
“Italy is an important ally and trading partner to the United States, and we are grateful for the trust of Eni as our newest customer. This deal marks a significant milestone for the company and is further recognition of our growing global energy leadership and strong record of execution”, Venture Global chief executive Mike Sabel said in a separate press release on Venture Global’s website.
Last week another European company, Germany’s state-owned SEFE Securing Energy for Europe GmbH, announced the finalization of an agreement to increase its offtake from CP2 LNG to three MMtpa. The deal adds 750,000 metric tons a year to the 2023 agreement between Venture Global and SEFE.
“Venture Global is expected to become Germany’s largest LNG supplier, with a combined 5 MTPA of 20-year offtake agreements signed with SEFE and EnBW”, Venture Global said July 9.
“In addition to its existing long-term agreements, Venture Global to date has supplied Germany with almost 80 cargoes of LNG from its Calcasieu Pass and Plaquemines LNG facilities, enough to power 8 million German homes for one year”.
Last month Venture Global said it had started site work at CP2 LNG after receiving final clearance from the Federal Energy Regulatory Commission.
In March the Department of Energy (DOE) conditionally allowed CP2 LNG to export to countries without a free trade agreement (FTA) with the United States. The project had already received authorization for the FTA portion of its request to export the equivalent of about 1.45 trillion cubic feet a year of natural gas, in a DOE order April 2022.
The DOE said it was withholding a final order for the non-FTA portion pending a review of permitting considerations launched by the previous administration.
In May the DOE said it was ready to proceed with issuing final orders on pending applications after delivering its verdict on the review initiated by the Biden government.
Venture Global said Wednesday in the announcement of the deal with Eni, “To date, approximately 13.5 MTPA of CP2 Phase One has been sold, raising the total contracted capacity for all of Venture Global’s projects to 43.5 MTPA”.
To contact the author, email jov.onsat@rigzone.com
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